ABC Company was organized on January 1, 2022 with 100,000 authorized shares of P100 par value. January 15 -Sold 30,000 shares at P150 per share. February 14 -Issued 2,000 shares for legal services with a fair value of P300,000. The shares on this date are quoted at P160 per share. March 27 -Purchased 5,000 treasury shares at a cost of P12 per share. October 31 -Issued P4,000,000 convertible bonds at 110. The bonds are quoted at 97 without the conversion feature. November 5 -Declared a 2-for-1 share split when the market value of the share was P160. December 17 -Sold 10,000 shares at P75 per share. What total amount should be recognized as share premium on December 31, 2022?
ABC Company was organized on January 1, 2022 with 100,000 authorized shares of P100 par value. January 15 -Sold 30,000 shares at P150 per share. February 14 -Issued 2,000 shares for legal services with a fair value of P300,000. The shares on this date are quoted at P160 per share. March 27 -Purchased 5,000 treasury shares at a cost of P12 per share. October 31 -Issued P4,000,000 convertible bonds at 110. The bonds are quoted at 97 without the conversion feature. November 5 -Declared a 2-for-1 share split when the market value of the share was P160. December 17 -Sold 10,000 shares at P75 per share. What total amount should be recognized as share premium on December 31, 2022?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 5MC: Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of 10 par...
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- ABC Company was organized on January 1, 2022 with 100,000 authorized shares of P100 par value.
January 15 -Sold 30,000 shares at P150 per share.
February 14 -Issued 2,000 shares for legal services with a fair value of P300,000. The shares on this date are quoted at P160 per share.
March 27 -Purchased 5,000 treasury shares at a cost of P12 per share.
October 31 -Issued P4,000,000 convertible bonds at 110. The bonds are quoted at 97 without the conversion feature.
November 5 -Declared a 2-for-1 share split when the market value of the share was P160.
December 17 -Sold 10,000 shares at P75 per share.
What total amount should be recognized as share premium on December 31, 2022?
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